1. Field of the Invention
The present invention generally relates to automatic bill payment systems, and more particularly to a system and method for interfacing merchant payment processing systems, card issuer databases, and marketing systems, and the creation of a merchant database including aggregated merchant and cardmember data for performing automatic bill payments.
2. Related Art
Late payments can slow down a merchant cash flow, and collecting back payments can be costly. An automatic bill payment service (also referred to as recurring payment service) can speed up the payment process and improve customer retention with the merchant. It allows customers with recurring charges to pay the merchant automatically with a financial transaction card selected by the user. It is convenient for the customer and helps the merchant get paid on time. As a result, no late notices need to be sent or phone reminders need to be made.
By setting up automatic bill payment services, customers do not have to worry about writing checks, late charges, or missed payments—even when they are away from home. In addition, customers using transaction cards enrolled in rewards programs earn miles, points, or cash back each time a bill is automatically paid.
Customers typically set up automatic bill payments through a merchant's bill pay webpage by logging onto a URL or through the merchant's customer service centers by calling a customer-service number of the merchant. After several pieces of information are input, the customer is enrolled.
Another technique has been to retrieve and disseminate information records from Internet sources. Such systems read the configuration settings of an existing bill pay service, such as payee information (electronic and paper), scheduled and automatic payments, and e-bill configurations. An application then guides a consumer through the completion of the payee set up process at the new bill pay service, auto-filling all available biller information and payment profiles. This application can be run from a service provider other than the merchant.
Merchant automatic bill payment data and cardmember transaction account data are stored in distinct databases. In some systems, cardmember transaction account data and marketing data are stored in distinct databases as well. As a result, various applications within the automatic bill payment, transaction account and marketing systems do not share a common or consistent interface, and the process of setting up an automatic payment service with a merchant remain cumbersome and time-consuming. In many cases, existing multi-step processes for setting up this type of service discourages customers from even signing up.
Moreover, it is difficult, if not impossible, to identify cardmembers who also receive services from merchants who provide automatic bill payment services thus driving marketing costs higher. In addition, without such interfacing, card issuers who are partnered with merchants offering automatic bill payment services are still at risk of their cardmembers setting up automatic bill payments with competitor transaction accounts. Given the foregoing, what is needed is a system, method and computer program product which leverages merchant and cardmember information to improve efficiency and customer/merchant satisfaction associated with automatic bill payment services.